Canon Reports Mixed Q1 Results Due to COVID-19

Canon Reports Mixed Q1 Results

Due to the impact of COVID-19, Canon says it has experienced a decline in net sales, operating profits and net income for the first quarter of 2020 (Q1, 2020). On the other hand, its new businesses (commercial printing, network cameras, medical, and industrial equipment) as a whole, achieved sales and profit growth.

Some highlights include:

• Net sales declined by 9.5% to 3 billion yen (USD$ 7.27 billion)
• Operating profit declined by 18.7% to 9 billion yen (USD$ 305 million)
• Net income declined by 30.0% to 9 billion yen (USD$ 203 million)

By business unit, Office closed with profit increase thanks to comprehensive expense management. In particular, net sales in office segment dropped 9.4% to 397.6 billion yen (USD$ 3.7 billion), while operating profit reached 45.9 billion yen (USD$426.5 million), an increase of 2.9% comparing to the same period in last year.

In Imaging system, net sales decreased 13.9% to 151.7 billion yen (USD$1.41 billion), while operating profit declined 80.6% to 0.9 billion yen (USD$ 8.4 million).

Canon pointed out that short production supply and worsening market conditions are the main factors that are causing the declines.

Other business units recorded sales and profit decline.

As for Q2 outlook, Canon feels it’s impossible to reveal or predict what the world will be like after COVID-19 pandemic fades. So is the case with Canon.

Related:

• Canon Closes Offices in Japan to Fight COVID-19